Investors eye Iran prospects

Investors are racing to establish funds for Iran following last week’s nuclear deal with world powers, and many others are tapping into multinationals already present in the $400bn economy.

The agreement has made some seek a foothold in Tehran’s $100bn stock market even before sanctions are lifted, although others are taking a more cautious approach.

Classified as an upper-middle income country, with a population of 78m and annual output higher than that of Thailand or the United Arab Emirates, Iran is set to be the biggest economy to rejoin the global trading and financial system since the break-up of the Soviet Union more than 20 years ago. Brokerage Renaissance Capital predicts $1bn will flow into Iran in the first year after sanctions end, although that is not likely to happen for months and may not occur in one go.